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The Impact of Mutual Ownership on the Management and Governance of a Football Club Essay Example

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The Impact of Mutual Ownership on the Management and Governance of a Football Club

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The Impact of Mutual Ownership on the Management and Governance of a Football Club. Any business organisation must adopt and implement the essentials of business management and corporate governance principles to ensure its survival, expansion and sustainability. A football club, as mentioned earlier, is also a commercial enterprise that has established a managerial hierarchy and board of directors, which work in collaboration to formulate and implement various short and long-run business strategies that enhance the trust of investors, partners, customers and other stakeholders. Indeed, this improves internal efficiency, effectiveness and corporate performance (Michie and Oughton, 2005). The mutualisation of a football is a tedious step-by-step procedure. The first step in this process is to ‘

acquire all the shares from existing shareholders’ followed by the second step that involves the ‘cancellation’ of entire treasury stock. The last step is about ‘re-writing of club constitution to reflect mutuality’ (Michie, 1999, p.16). The administration does not necessarily enjoy similar powers and authority that it had before under a private ownership model. In addition, a supporter starts playing the role of organisational watchdog, which in turn though apparently, ‘increases the accountability’ of club’s managers and strategic planners to their members (APFG Report, 2009, p. 15). To elucidate the scope of the aforementioned argument raised in APFG Report (2009), it must be emphasised that mutual ownership does assist in mitigating issues related to poor management because of direction from members; however, accountability tends to decrease because of highly dispersed members in comparison to the private ownership model. In simple words, the argument in APGP report has no real scope as it can’t be supported. In short, the above provides the evidence of what structural and management changes may take place during and after transformation from private ownership to mutuality. The Impact of Mutual Ownership on the Management and Governance of a Football Club.

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Jonathan Michie and Christine Oughton (2005) “The Corporate Governance of Professional Football Clubs in England” Blackwell Publishing Ltd Volume 13 Number pp. 517-531

Ross Emery and Mike Weed (2006) “Fighting for survival? The financial management of football clubs outside the‘top flight’ in England” Taylor and Francis Group pp. 1–21

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Johnston Birchall and Richard Simmons (2004) “The Involvement of Members in the Governance of Large-Scale Co-operative and Mutual Businesses: A Formative Evaluation of the Co-operative Group” REVIEW OF SOCIAL ECONOMY, VOL. LXII, NO. 4, pp. 487-515



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Jonathan Michie (1999) “New Mutualism -A Golden Goal?” Trafford Press Ltd pp. 1- 28

Hamil, Sean and Stephen Morrow (2008) “The People’s Game and Community Ownership of Football Clubs: A Mutual Solution to a Market Problem” pp. 1-8

Sara Ward (2009) “What Alternative Business Models Exist in the Organisation of Professional Football Clubs?” pp. 1-11

Stephen Hope (2003) “The Ownership Structure of Nationwide League Football Clubs 2002-03” pp. 3-35

Sarah Gilmore and Clive Gilson” (2007) “Finding form: elite sports and the business of change” Journal of Organizational Change Management Emerald Group Publishing Limited Vol. 20 No. 3, pp. 409-428

JON MAINWARING “Fan activism may hold lessons for directors and shareholders” Wall Street Journal Available at http://online.wsj.com/ad/article/businessoffootball-fan

APFG Report (2009) “English Football and its Governance” All Party Football pp. 3- 24 Available at http://www.allpartyfootball.com/APFG_Report_on_English_Football_&_Its_Governance_April_2009%5B1%5D.pdf

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